Kalpataru Power Transmissions Ltd. share price forecast
The 18 reports from 7 analysts offering long term price targets
for Kalpataru Power Transmissions Ltd. have an average target of 411.86. The consensus estimate
represents an upside of 5.75%
from the last price of 389.45.
TOP PICKS: LT, KNR, PNC Infra, Ashoka, NCC, Capacite Infra, ITD and KPTL. HDFC Securities Institutional Equities (HSIE) hosted the 4th Annual Infrastructure Investors Forum on 18/19th Feb 2021, though virtual this time. We had attendees from 12 large listed Industrials/Infrastructure companies represented by Promoters, CEO/CFO/IR teams. After almost a decade, there is strong/consensus optimism building up for the Indian Infrastructure story. Ordering has moved beyond roads with focus now on health, education, portable water, renewable energy, manufacturing expansion, uptick in real estate cycle and all this is coinciding with relatively lower crude prices, lowest interest rate and improving GDP/Tax collection. Companies remain bullish whilst valuation is still at 40-50% discount to cross cycle mean. We maintain constructive as envisaged in our thematic On Road to Rerating and Triggering a New Cycle.
For Q3FY21, KPTL's standalone revenue was at | 1993 crore (our estimate of | 2183 crore) merely growing 0.7% YoY on the back of steady execution across all businesses amid challenging economic conditions and labour availability constraints. EBITDA came in at | 207 crore (our estimate of | 231.4 crore), down marginally by 0.5% while EBITDA margins sustained at 10.4% with marginal decline of 10 bps YoY. Adjusted PAT (net of exceptional items) came in at | 147.9 crore, up 16.5% YoY partly aided by reduction in interest expense, which declined 45% to | 23 crore YoY. KPTL reported...
We believe continuous focus on operational efficiencies, cost optimisation and prudent working capital management has helped the company improve performance across all segments. We believe worst is over and remain optimistic owing to positive outlook on T&D; and emerging segments like Railways/Oil & Gas, healthy OB, deleveraging backed by asset monetization...
We are upgrading target price of Kalpataru Power Transmission (KPTL) to Change in Estimates | Target | Reco Rs437 (Rs296 earlier) as we increase PE multiple from 6x to 8x (last 5 -year...
OI guidance maintained at Rs90-100bn with revenue growth of 5-10% (earlier 8-10%) and EBITDA margins of 10.5-11% for FY21E. Kalpataru Power Transmission Ltd (KPTL) reported decent quarterly performance despite pandemic and onset of monsoon led by better execution, higher other income and lower interest cost. Order inflows came in at ~Rs7bn during 2Q majorly contributed by T&D; segment (98%) with the company being further L1 in orders worth ~Rs30bn. OB stands at ~Rs123bn...
Sales for Q2FY21 came in flat at Rs18.8bn, largely in line with our estimates, as company successfully restored labor availability and normalcy of supply chain; majority of projects are currently operating at pre-COVID levels. EBITDA came in flat at Rs2bn while EBITDA margins were stable at 10.7%. The company has an order book of Rs.123bn with a split of ~40% orders from O&G; and Rail business The company is looking at an ordering pipeline of Rs140-150bn in the domestic space. Along with Oil & Gas and Railways, it is targeting a full...
Management maintained its guidance of 8-10% revenue growth with EBITDA margins in 10.5-11% range and OI of Rs90-100bn for FY21E. Kalpataru Power Transmission Ltd (KPTL) reported steady performance for the quarter amidst nation-wide lockdown led by strong execution, better operational performance and higher other income. Order inflows stood at Rs18.7bn majorly contributed by T&D-international; segment (71%) and is further L1 in orders worth ~Rs17bn. OB stands at ~Rs135bn providing...
We increase our FY22E EPS by 3% and roll forward our valuation to Jun-22E. We maintain BUY on KPTL with a revised target price of Rs 357/sh (vs. Rs 333/sh earlier). Key takeaways from KPTLs FY20 AR are as follows: (1) geographically a well-diversified order book and robust bid pipeline; (2) standalone profitability stable and moderate; consolidated profitability dragged by subsidiaries performance, mainly pertaining to BOT assets; (3) while borrowings increased by 25%, it is still quite comfortable (net D/E at 0.29); and (4) investment/loans worth Rs 1,650/Rs 320mn given to SSL. Multiple triggers are in place for further rerating with (1) resumptions of near 75-80% execution in Jun-20, (2) likely receipts of monetisation proceeds of three BOOT transmission assets during FY21E worth Rs 10bn+, and (3) restructuring of JMC three Roads BOTs, which shall reduce cash burnout. The overhang of the promoter groups real estate exposure will continue to restrict multiple rerating.
KTPL has laid out a three- pronged strategy of disciplined bidding to protect margins, improve WC and liquidate non-core assets. It is targeting becoming debt free in FY21, mainly from proceeds from selling transmission assets. Similar to KEC, it has also diversified with rail and oil & gas as key areas. In international markets, it has recently increased its...
We maintain BUY. Key risks (1) Delays in capex recovery, (2) Slowdown in government infrastructure spend, (3) Delay in Transmission/Road BOTs monetization and (3) NWC deterioration. We maintain BUY on Kalpataru Power Transmission Ltd. (KPTL) with increased SoTP of Rs 333/sh (core 10x FY22EPS). 4QFY20 performance was a miss owing to COVID-19 impact in last week of Mar-20 (Rs 3bn miss in revenue). Multiple triggers are in place for further re-rating with (1) Resumptions of near 75-80% execution in May-20 (2) Likely monetization of three BOOT transmission assets during FY21E & (3) Restructuring of JMC three Roads BOTs, which shall reduce cash burnout. We have increased FY21/22E EPS by 28.7/4.6% to factor in better than expected execution ramp up.
Expect gradual ramp up Q2 onwards; valuations undemanding; Maintain Buy Despite a marginal topline miss, KPTL has managed its EBIDTA of 11% with a better project mix. PAT was lower than estimate on account of higher interest and taxes, as WC needs went up in Q4 While Q1 is likely to be subdued, it is confident of pickup from Q2 onwards and has guided a 10% revenue growth and margins in 10.511% range for FY21. We are building in a 5%/15% topline growth in...
On the face of it NIP target looks very ambitious and unachievable, still at HSIE we believe that even if ~50% hurdle is met we are home. Multiple issues needs to be ironed out like (1) Installing long term financing vehicles (2) Opening up of Insurance/Pension funding further (3) Attracting long term foreign capital & (4) Setting mechanism for dispute resolution. NIP Task Force submitted the final report to Finance Ministry on 30th Apr 2020. NIP envisages doubling Infrastructure spend from ~5% of nominal GDP to ~10% over FY21-23. The report not only delves deeper into segment wise capex outlay but has detailed planning on mitigating challenges, intiating reforms and roadmap on mobilizing financial resources. NIP talks about Financial reforms as well and sets tone for long term Infrastructure financing.
Companies like Larsen & Toubro and KEC with exposure to the Middle East and North Africa (MENA) region are expected to get impacted by the recent more than 60% fall in crude oil prices to US$22/barrel. This is expected to impact overall orders/awarding from the MENA region. Companies like Elgi Equipments, AIA Engineering, Thermax, Engineers India and Kalpataru Power with exposure to international geographies like Europe, Middle East, China for sales or essential raw material may get impacted. However, lockdowns in India, UK, Europe and other geographies due to Covid-19 are...
Aided by strong execution, Kalpataru Power Transmission (KPP) sustained its growth momentum in 3QFY20 as well with its revenue growing by 15% YoY to Rs19.8bn vs. our estimate of Rs20.2bn. T&D; revenue increased by 5% YoY, while non-T&D; grew by 20% (Railway business up 2x). EBITDA margin fell by 20bps YoY to 10.5%, while blended EBITDA grew by 13% YoY to Rs2.1bn. Despite strong EBITDA growth, higher interest (+35% YoY) and higher depreciation (+22% YoY) capped the PBT at Rs1.5bn (+9% YoY). Aided by lower taxes, adjusted PAT grew by 23% YoY to Rs1.13bn, while reported PAT grew by 49% YoY to Rs1.37bn, as KPP sold its stake in Kalpataru Satpura (Rs240mn). While KPP's order book rose by 5% YoY to Rs149bn, YTD order inflows remain...
Aided by strong execution, Kalpataru Power Transmission (KPP) sustained its growth momentum in 3QFY20 as well with its revenue growing by 15% YoY to Rs19.8bn vs. our estimate of Rs20.2bn. T&D; revenue increased by 5% YoY, while non-T&D; grew by 20% (Railway business up 2x). EBITDA margin fell by 20bps YoY to 10.5%, while blended EBITDA grew by 13% YoY to Rs2.1bn. Despite strong EBITDA growth, higher interest (+35% YoY) and higher depreciation (+22% YoY) capped the PBT at Rs1.5bn (+9% YoY). Aided by lower taxes, adjusted PAT grew by 23% YoY to Rs1.13bn, while reported PAT grew by 49% YoY to Rs1.37bn, as KPP sold its stake in Kalpataru Satpura (Rs240mn). While KPP's order book rose by 5% YoY to Rs149bn, YTD order inflows remain...
Whilst 3QFY20 Rev was inline interest cost resulted in 14% APAT miss. Tepid order inflows and slowing growth in T&D and Railways segment on high base will result in sub 10% FY21E Rev Growth. Tailwinds like consolidated debt free status by FY21E will cushion any further de-rating. We maintain BUY. EPS cut factors in slower than expected order intake and muted ordering environment. Key risks (1) Delays in capex recovery, (2) Slowdown in government infrastructure spend, (3) Delay in Road BOTs monetization and (3) NWC deterioration. We maintain BUY on Kalpataru Power Transmission Ltd. (KPTL) with reduced SoTP of Rs 644/sh (core 15x FY21EPS). The Company is expected to achieve 18-20% revenue growth during FY20E. We have cut FY20/21E EPS by 0.7/4.1% to factor in tepid inflows. Tailwinds like significant BS deleveraging by FY21/22E will lead to further re-rating.
execution across the segments viz. T&D;, Oil & Gas Pipeline and Railways segments. YTD order inflow stands at Rs65bn majorly contributed by T&D; business and is further L1 in orders worth Rs15bn. Management is confident of achieving revenue growth of 18-20% with EBITDA margins of 10.5-11% for FY20E. Management has guided for order inflow to be around Rs90-100bn led by opportunities in T&D; (Green Energy Corridor projects in domestic market and international projects) and Infra sector. Approval process for transfer of Transmission Assets to CLP is progressing well and are as per planned...
